Diamonds may be forever but their supply certainly isn't, and that is the main reason why the main companies involved in the business are predicting a “perfect storm” triggered by rising demand and prices.

Until recently, falling commodity prices and rising costs prompted some of the world’s biggest miners, such as BHP Billiton (ASX:BHP), Rio Tinto (LON:RIO) and Anglo American (LON:AAL), to review their diamond business.

But diamonds have regained a place in their hearts, and in their balance sheets.

"We expect the demand requirements to grow around 6% per annum for the course of the decade," said Alan Davies, head of the diamond unit for Rio Tinto, the world's third-largest diamond producer, according to The WSJ.com. "And when you look at the supply response there hasn't been a major find brought on for a long time."

The report adds that for Rio and Anglo American the diamond business is the one delivering some of the healthiest returns these days.